TikTok Shop Insights - What Every eCommerce Brand Needs to Know About This Booming Sales Channel

Thinking about launching a TikTok Shop? Read this first.

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Launched in September 2023 in the US, TikTok Shop enables retailers, brands or merchants with products to sell to new audiences via entertaining video content. Especially amongst the 18-34 demographic, TikTok offers an tremendous e-commerce opportunity for DTC and retail brands. It’s still early days and marketers are wondering:

1. How does TikTok Shop compare to other social media platforms?
2. What categories sell?
3. Who’s performing well?
4. And what should you be aware of before you launch your own?

To answer these questions, we looked deep into our datasets from June 2024 – August 2024.

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This Research is by RightMetric

An strategic insights partner combining audience, content, and channel research to provide mission-critical intelligence to marketing strategists.

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In Partnership With DTC

The premier source of news and best practices for Direct to Consumer Marketers.

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RightMetric is a strategic insights partner combining audience, content, and channel research to provide mission-critical intelligence to marketing strategists.

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KEY TAKEAWAYS

What did we learn from our deep dive on TikTok Shop?

An strategic insights partner combining audience, content, and channel research to provide mission-critical intelligence to marketing strategists.

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WAYS TO SELL

TikTok Shop 101

TikTok Shop is a new shopping platform that was launched in the USA in September 2023, after beta testing debuted in select Southeast Asian markets and the UK in November 2022.

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TikTok Shop offers three ways to sell.

• Creators selling their own products: Tag products during livestreams to allow viewers to instantly learn more and make purchases in real time, enhancing engagement and driving sales.
• Creators selling brand’s products: Embed product links that enable users to effortlessly shop directly from their feed or “For You” page, streamlining the purchasing process.
• Brands selling their own products: Create a product catalogue on your page by utilizing the shop icon, making it easy for viewers to find and purchase items they’ve seen in your promotional videos.

TikTok Shop transforms the shopping experience.

TikTok Shop currently offers three ways to purchase, all featuring seamless, creator-led experiences.

• Shoppable Livestream: Tag products during livestreams to allow viewers to make purchases in real time, enhancing engagement and driving sales.
• Shoppable Creator Videos: Embed product links that enable users to effortlessly shop directly from their feed or “For You” page, streamlining the purchasing process.
• Digital Storefront: Create a product catalogue on your page by utilizing the shop icon, making it easy for viewers to find and purchase items they’ve seen in your promotional videos.

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AUDIANCE AGE

TikTok Shop VS The Rest

Why it shouldnʼt be ignored. TikTok resonates with all age groups (itʼs true), and its users spend 61% more time per session than on other social platforms.

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TikTok Shops is the social commerce platform to target the 18-24 demographic whose purchasing decisions are highly influenced by creators.

TikTok attracts a younger audience, with the 1824 and 2534 age groups making up 29% and 30% of its demographic, compared to 11% and 24% for Facebook, the largest social media platform.

While Snapchat has the highest number of users in the 1824 age range 38%, TikTok users spend 5x more time on the platform.

While TikTok is dominant with users under 35, it resonates with all age groups and shouldnʼt be ignored for brands targeting older audiences.

With 41% of TikTok users over the age of 35, the platform is not just for the young, itʼs a valuable platform to capture the attention of age groups of all ranges.

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TikTok users spend 61% more time per session than on other social platforms, presenting a larger window to showcase products, tell stories, and connect with potential customers.

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TikTok is the new king of social media. It captures the most attention from users by a long shot.

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USA SALES

Tiktok Shop Revenue Breakdown by Category

Hint: Thereʼs lots of revenue. Donʼt ignore TikTok Shop when considering your e-commerce strategy, especially if you operate in the Top 3 industry categories.